The US government has unveiled plans for a new crackdown on tax avoidance.

It is hoped the move will put a dent in the country’s deficit which stands at
a record $1.56 trillion (£0.93trillion) this year.

Under the plan, US-based multinationals that transfer brands and patents to
foreign affiliates that pay little tax overseas- known as transfer pricing-
would pay a surcharge on the excess returns on those assets,the
FT reported.

The administration also went a step further by announcing a potential
crackdown on companies’ rights to take immediate tax deductions on the interest
payments when borrowing cash to invest overseas.